The UK’s Competition and Markets Authority (CMA) has opposed NortonLifeLock’s approximately £6bn purchase of Avast, with the regulator stating the deal could reduce competition in the UK’s antivirus software marketplace.
CMA said the merger could also lead to UK consumers getting a worse deal when looking for cyber safety software in the future, citing that the two merging companies are close competitors.
Both NortonLifeLock and Avast develop and distribute cyber safety software, including antivirus software, privacy software like VPNs, and identity protection tools.
Both now have five working days to submit proposals in response to the watchdog's competition concerns. Once received, the CMA will have five further working days to either accept the proposals or refer the case for an in-depth phase 2 inquiry.
“We’re living more of our lives online and it’s vital that people have access to competitive cyber safety software when seeking to protect themselves and their families,” said David Stewart, CMA executive director. “Unless the companies can offer a clear-cut solution to address our concerns, we intend to carry out an in-depth phase 2 investigation.”
First announced in August last year, NortonLifeLock and Avast say the deal will create the world's biggest consumer-focused security software company.
